§ Lord Pearson of Rannochasked Her Majesty's Government:
Further to the Question by the Lord Pearson of Rannoch on 12 March (H.L. Deb., col. 345), whether 218WA the United Kingdom could have stayed out of the European "stability pact" had it wanted to do so; and, if so, how. [HL1513]
§ Lord McIntosh of HaringeyThe Stability and Growth Pact is designed to ensure sound public finances in EMU. The United Kingdom's interest lies in a successful EMU. Low government borrowing is essential for economic stability and the success of EMU.
The Stability and Growth Pact, agreed in principle at the Dublin European Council in December 1996, and adopted at the Amsterdam Council in June 1997 comprises a voluntary, non-binding resolution recording the political commitments of member states and two procedural regulations for implementing Articles 103 and 104(c) of the Treaty. The first of these was subject to the qualified majority voting procedure; the second required unanimity. Both applied to all member states.
§ Lord Pearson of Rannochasked Her Majesty's Government:
What are their estimates of the transfers which may become necessary over the next five years between the 11 member states of the European Union which plan to form an economic and monetary union in accordance with the Treaty of Rome. [HL1515]
§ Lord McIntosh of HaringeyIn EMU, fiscal policy will remain the responsibility of member states, subject to the constraint of the Stability and Growth Pact. There will be scope within the Stability Pact for member states' fiscal policy to react to changing circumstances, so increased transfers will not be necessary. In addition, Article 104b, the 'no bail-out clause', makes clear that a member state cannot be liable for another member state's commitments.